Oracle blames Android for deep cuts in licensing revenue

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Java is running hot between Oracle and Google as does the retrial over whether the latter’s parent company, Alphabet, should pay licensing fees for the development platform or legally claim fair use and owe nothing.

Oracle’s co-CEO Safra Catz testified in San Francisco district court that Google’s decision to open up Android for manufacturers to develop meant a severe drop in its Java API licensing revenues.

Pre-Android era, Samsung paid $40 million per agreement to Oracle — it paid $1 million after Android came along. Oracle cut down its license fee by 97.5 percent to persuade Amazon to keep using Java after it stopped Kindle development on Java and started using Android for the Kindle Fire.

Catz argues that Google violated “basic moral principles” in its alleged exploitation of Java to make and distribute Android. Google’s attorneys argued that the plaintiff was chasing licensing fees in court because it couldn’t compete in the mobile space. The Oracle executive admitted there was an effort to make its own phone, but it was shelved because the company determined it had “very limited internal expertise to make smart decisions.”

Oracle acquired Sun, the company that owned Java, back in 2010. It filed suit against Google over the current issue in 2012. The first trial ended in a hung jury and intermediary negotiations failed to provide a settlement.

Source: Reuters

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About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.